UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-Q/A
                                (Amendment No. 1)
(Mark One)


  /X/     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
          ACT OF 1934

          For the quarterly period ended December 31, 2003

          OR

 /X/      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

          For the transition period from ______ to ______

                         Commission File Number: 0-24589

                               BCSB BANKCORP, INC.
             ------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)


          UNITED STATES                                 52-2108333
----------------------------------                ---------------------
(State or Other Jurisdiction of                     (I.R.S. Employer
 Incorporation or Organization)                    Identification No.)

            4111 E. JOPPA ROAD, SUITE 300, BALTIMORE, MARYLAND 21236
            --------------------------------------------------------
                    (Address of Principal Executive Offices)

                             (410) 256-5000
                -----------------------------------------------
                Issuer's Telephone Number, Including Area Code)

                                       N/A
              ----------------------------------------------------
              (Former Name, Former Address and Former Fiscal Year,
                         if Changed Since Last Report)

Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required  to be filed by  Section  13 or 15(d) of the  Securities  Exchange  Act
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X  No
                                       --   --

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act). Yes   No X
                                               --    --

     As of January 31,  2004,  the issuer had  5,898,593  shares of Common Stock
issued and outstanding.

<PAGE>
                                EXPLANATORY NOTE

     BCSB  Bankcorp,  Inc.  (the  "Company")  is amending  its Form 10-Q for the
quarter  ended  December  31,  2003 to restate  its  consolidated  statement  of
financial  condition as of December 31, 2003 and its consolidated  statements of
operations  for  the  three  months  ended  December  31,  2003 to  correct  the
accounting treatment for a Bank Owned Life Insurance ("BOLI") policy. Subsequent
to the issuance of the Company's consolidated financial statements as of and for
the three months ended December 31, 2003 and the filing of its Quarterly  Report
on Form 10-Q for the quarter  ended  December 31, 2003,  the Company  determined
that it had  incorrectly  accounted for its income tax provision  related to the
BOLI policy. The effect of the restatement is to reduce the Company's income tax
provision to $53,708 for the three  months ended  December 31, 2003 from $91,560
previously reported,  thereby increasing net income from $188,057, or $.03 basic
and diluted earnings per share, to $225,909,  or $.04 basic and diluted earnings
per  share.  Total  stockholders'  equity at  December  31,  2003  increases  to
$44,309,111  from  $44,271,259  previously  reported.  For purposes of this Form
10-Q/A, and in accordance with Rule 12b-15 under the Securities and Exchange Act
of 1934,  as amended,  the Company has amended and restated in its entirety each
item of the  Company's  Form 10-Q for the three months ended  December 31, 2003,
which has been  affected by the  restatement.  This Form 10-Q/A does not reflect
events occurring after the filing of the original Form 10-Q, or modify or update
those  disclosures in any way, except as required to reflect the effects of this
restatement.


                                    CONTENTS

                                                                            PAGE
                                                                            ----

PART I.  FINANCIAL INFORMATION
         ---------------------

Item 1.  Financial Statements

         Consolidated Statements of Financial Condition as of
           December 31, 2003 (unaudited) and September 30, 2003................2

         Consolidated Statements of Operations for the Three Months Ended
           December 31, 2003 and 2002 (unaudited)..............................3

         Consolidated Statements of Comprehensive Income
           for the Three Months Ended
           December 31, 2003 and 2002 (unaudited)..............................4

         Consolidated Statements of Cash Flows for the Three Months Ended
           December 31, 2003 and 2002 (unaudited)..............................5

         Notes to Consolidated Financial Statements............................8

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operation...................................11


PART II.  OTHER INFORMATION
          -----------------

Item 6.  Exhibits and Reports on Form 8-K.....................................18


SIGNATURES....................................................................20



                                       1
<PAGE>

                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------
<TABLE>
<CAPTION>

                                                                            December 31,        September 30,
                                                                                2003                2003
                                                                        -------------------   ------------------
                                                                             (Unaudited)
<S>                                                                              <C>                 <C>
                        Assets
                        ------
Cash                                                                     $   12,356,894      $   11,032,415
Interest bearing deposits in other banks                                      5,846,539          11,288,223
Federal funds sold                                                            1,328,564             987,636
Investment securities, held to maturity                                       3,003,559           2,500,000
Investment securities, available for sale                                   114,370,984         121,289,555
Loans receivable, net                                                       359,341,536         365,054,645
Loans held for sale                                                             190,000             247,600
Mortgage backed securities, held to maturity                                 17,694,254          18,394,439
Mortgage backed securities, available for sale                              113,637,576         116,204,401
Premises and equipment, net                                                   9,088,613           9,226,887
Federal Home Loan Bank of Atlanta stock                                       3,304,900           3,304,900
Accrued interest receivable                                                   2,035,173           2,114,609
Prepaid and deferred income taxes                                             2,041,321           1,752,582
Bank Owned Life Insurance                                                    11,546,602                  --
Goodwill                                                                      2,294,327           2,294,327
Core deposit intangible                                                         407,000             421,000
Other assets                                                                  1,770,429           2,084,630
                                                                         --------------      --------------
Total assets                                                             $  660,258,271      $  668,197,849
                                                                         ==============      ==============
                Liabilities and Stockholders' Equity
                ------------------------------------
Liabilities
-----------
  Deposits                                                               $  555,747,735      $  551,928,619
  Advances from the Federal Home Loan Bank of Atlanta                        32,217,812          32,267,861
  Trust Preferred Securities                                                 22,500,000          22,500,000
  Advance payments by borrowers for taxes and insurance                         855,220             854,694
  Income taxes payable                                                          148,519             193,051
  Payables to disbursing agents                                                 538,726             136,352
  Accounts payable Trade Date Securities                                      2,000,000          13,998,307
  Dividends payable                                                             267,955             266,329
  Other liabilities                                                           1,673,193           1,284,720
                                                                         --------------      --------------
Total liabilities                                                           615,949,160         623,429,933

Commitments and contingencies
Stockholders' Equity
--------------------
  Common stock (Par value $.01 - 13,500,000 authorized,
   5,898,593 and 5,885,593
   shares issued and outstanding
   at December 31, 2003 and September 30, 2003)                                  58,986              58,856
  Additional paid-in capital                                                 20,794,994          20,652,137
  Obligation under Rabbi Trust                                                1,251,817           1,243,469
  Retained earnings (substantially restricted)                               25,526,194          25,556,888
  Accumulated Other Comprehensive Income (net of taxes)                      (1,396,052)           (770,874)
  Employee Stock Ownership Plan                                                (730,328)           (776,060)
  Stock held by Rabbi Trust                                                  (1,196,500)         (1,196,500)
                                                                         --------------      --------------
  Total Stockholders' Equity                                                 44,309,111          44,767,916
                                                                         --------------      --------------
Total liabilities and Stockholders' Equity                                $ 660,258,271       $ 668,197,849
                                                                         ==============      ==============
</TABLE>

The accompanying notes to the consolidated  financial statements are an integral
part of these statements.


                                       2
<PAGE>
                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                -------------------------------------------------
<TABLE>
<CAPTION>
                                                                 For Three Months Ended
                                                                       December 31,
                                                                ------------------------
                                                                  2003             2002
                                                                --------          ------
<S>                                                              <C>                <C>
Interest Income
---------------
  Interest and fees on loans                                $   5,652,851      $ 7,007,783
  Interest on mortgage-backed securities                        1,200,449        1,055,779
  Interest and dividends on investment securities                 943,341          527,281
  Other interest income                                            13,567           91,146
                                                            -------------      -----------
Total interest income                                           7,810,208        8,681,989

Interest Expense
----------------
  Interest on deposits                                          3,371,172        3,675,763
  Interest on borrowings - short term                              44,203           56,975
  Interest on borrowings-long term                                260,527          274,773
  Other interest expense                                          267,688          178,726
                                                            -------------      -----------
Total interest expense                                          3,943,590        4,186,237
                                                            -------------      -----------

  Net interest income                                           3,866,618        4,495,752
  Provision for losses on loans                                   181,773          281,998
                                                            -------------      -----------
  Net interest income after provision
     for losses on loans                                        3,684,845        4,213,754
Other Income
------------
  Gain on sale of repossessed assets                               77,388               --
  Gain on sale of loans                                            24,002           66,985
  Fees and charges on loans                                        55,194           50,745
  Fees on transaction accounts                                    211,184          129,290
  Rental income                                                    31,804           37,047
  Gain (Loss) from sale of Investments                            (12,746)          25,000
  Gain from sale of Mortgage Backed Securities                      7,548           70,010
  Income from Bank Owned Life Insurance                           121,602               --
  Miscellaneous income                                              9,585           46,677
                                                            -------------      -----------
  Net other income                                                525,561          425,754
Non-Interest Expenses
---------------------
  Salaries and related expense                                  2,175,609        2,137,591
  Occupancy expense                                               486,905          394,983
  Deposit insurance premiums                                       52,987           49,618
  Data processing expense                                         386,273          411,591
  Property and equipment expense                                  301,000          310,508
  Professional fees                                                65,103           58,176
  Advertising                                                     241,267          227,764
  Telephone, postage and office supplies                          146,124          154,650
  Other expenses                                                   75,521          162,900
                                                            -------------      -----------
Total non-interest expenses                                     3,930,789        3,907,781
                                                            -------------      -----------
Income before tax provision                                       279,617          731,727
Income tax provision                                               53,708          279,218
                                                            -------------      -----------

Net income                                                  $     225,909      $   452,509
                                                            =============      ===========
Basic and diluted earnings per share                        $        0.04      $      0.08
                                                            =============      ===========
</TABLE>

The accompanying notes to the consolidated  financial statements are an integral
part of these statements.
                                       3
<PAGE>

                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
           -----------------------------------------------------------
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                  For Three Months Ended
                                                                                        December 31,
                                                                           -------------------------------------
                                                                                 2003                2002
                                                                           -----------------   -----------------
<S>                                                                               <C>                 <C>

Net Income                                                                    $ 225,909            $ 452,509
Other comprehensive income, net of tax:
 Unrealized net holding gains (losses) on
  available-for-sale portfolios, net of tax $(393,545) and (114,474)           (628,369)             185,510
Reclassification adjustment for (gains) losses
  included in net income, net of tax $ 2,007 and (36,256)                         3,191              (58,754)
                                                                              ---------            ---------
Comprehensive income                                                          $(399,269)           $ 579,265
                                                                              =========            =========
</TABLE>

The accompanying notes to the consolidated financial statements are an integral
part of these statements.



                                       4
<PAGE>
                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                -------------------------------------------------


<TABLE>
<CAPTION>

                                                                                 For Three Months Ended
                                                                                       December 31,
                                                                           ----------------------------------
                                                                                2003                2002
                                                                           -----------------   --------------
<S>                                                                             <C>                 <C>
Operating Activities
--------------------
   Net Income                                                              $   225,909         $   452,509
  Adjustments to Reconcile Net Income to Net
  Cash Used by Operating Activities
  ---------------------------------
    Accretion of discount on investments                                       (19,899)             (4,652)
    Dividends on Investment Securities                                        (264,038)           (211,204)
    (Gain) Loss on sale of investments                                          12,746             (25,000)
    Loans originated for sale                                               (2,696,000)         (2,108,541)
    Loans sold                                                               2,777,602           1,923,264
    Gain on sale of loans                                                      (24,002)            (66,985)
    Loan fees and costs deferred, net                                          (20,339)            (73,142)
    Amortization of deferred loan fees and cost, net                           (85,054)            (17,136)
    Provision for losses on loans                                              181,773             281,998
    Non-cash compensation under Stock-Based Benefit Plan                        77,276              57,665
    Amortization of premium on mortgage backed securities                      122,976             139,569
    Amortization of purchase premiums and discounts, net                       (31,708)           (260,897)
    Gain on sale of mortgaged backed securities                                 (7,548)            (70,010)
    Provision for depreciation                                                 236,385             241,983
    Gain on sale of repossessed assets                                         (77,388)                 --
    Increase in cash surrender value of bank owned life insurance             (121,602)                 --
    Decrease in accrued interest receivable                                     79,436             401,271
    Decrease in prepaid income taxes                                           102,799             187,556
    Decrease in other assets                                                   314,201             253,990
    Decrease in accrued interest payable on deposits                            (1,688)            (39,955)
    Decrease in income taxes payable                                           (44,532)            (26,391)
    Decrease in accounts payable Trade Date Securities                     (11,998,307)                 --
    Increase in other liabilities and payables to
          disbursing agents                                                    790,847           1,033,656
    Increase in obligation under Rabbi-Trust                                     8,348               9,725
                                                                           -----------         -----------
        Net cash (used) provided by operating activities                   (10,461,807)          2,079,273
</TABLE>


                                       5
<PAGE>
                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                -------------------------------------------------

<TABLE>
<CAPTION>
                                                                                   For Three Months Ended
                                                                                        December 31,
                                                                           -----------------------------------
                                                                                 2003                2002
                                                                           -----------------   ---------------
<S>                                                                              <C>                 <C>

Cash Flows from Investing Activities
------------------------------------
    Purchase of Bank Owned Life Insurance                                  $ (11,425,000)      $          --

    Purchases of investment securities - available for sale                   (4,003,125)        (24,080,065)
    Proceeds from maturities of investment securities - available for sale     5,500,000           5,500,000
    Proceeds from sale of investment securities - available for sale           4,987,254           1,025,000
    Purchases of investment securities - held to maturity                     (1,003,750)                 --
    Proceeds from maturities of investment securities - held to maturity         500,000           1,000,000
    Longer term loans originated                                             (15,411,981)        (16,507,135)
    Principal collected on longer term loans                                  18,252,362          21,516,122
    Net increase (decrease) in short-term loans                                2,694,447          (2,560,117)
    Principal collected on mortgage backed securities - available for sale     5,685,136           6,548,288
    Purchase of mortgage backed securities - available for sale               (4,985,327)        (16,322,869)
    Proceeds from sale of mortgaged backed securities - available for sale     1,447,365           6,782,470
    Purchase of mortgage backed securities - held to maturity                 (1,095,533)                 --
    Principal collected on mortgage backed securities - held to maturity       1,782,374           4,606,048
    Proceeds from sale of repossessed assets                                      77,388                  --
    Investment in premises and equipment                                         (98,111)           (144,873)
    Purchase of Federal Home Loan Bank of Atlanta stock                               --             266,305
                                                                           -------------       -------------
        Net cash provided (used) by investing activities                       2,903,499         (12,370,826)

Cash Flows from Financing Activities
------------------------------------
Decrease in checks written in excess of bank balance                                  --            (390,799)
Net increase in demand deposits, money market, passbook
      accounts and advances by borrowers for taxes and
      insurance                                                                5,303,275           6,057,205
    Net (decrease) increase in certificates of deposit                        (1,377,710)          5,905,436
    Increase in Federal Home Loan Bank of Atlanta advances                    29,800,000                  --
    Repayment of Federal Home Loan Bank of Atlanta advances                  (29,800,000)                 --
    Exercised Stock Options                                                      111,443                  --
    Increase in Dividends Payable                                                  1,626                  --
    Dividends paid on stock                                                     (256,603)           (264,891)
                                                                           -------------       -------------
        Net cash provided by financing activities                              3,782,031          11,306,951
                                                                           -------------       -------------

Decrease (increase) in cash and cash equivalents                              (3,776,277)          1,015,398
Cash and cash equivalents at beginning of period                              23,208,274          25,703,327
                                                                           -------------       -------------
Cash and cash equivalents at end of period                                 $  19,431,997       $  26,718,725
                                                                           =============       =============
</TABLE>

                                       6
<PAGE>
                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                -------------------------------------------------

<TABLE>
<CAPTION>

                                                                                        December 31,
                                                                           -------------------------------------
                                                                                 2003                2002
                                                                           -----------------   -----------------
<S>                                                                               <C>                <C>
The following is a summary of cash and cash equivalents:
    Cash                                                                   $  12,356,894       $   9,774,030
    Interest bearing deposits in other banks                                   5,846,539          10,948,650
    Federal funds sold                                                         1,328,564           6,096,045
                                                                           -------------       -------------
    Balance of cash items reflected on Statement of
      Financial Condition                                                     19,431,997          26,818,725
        Less - certificate of deposit with an original maturity of
          more than ninety days                                                  100,000             100,000
                                                                           -------------       -------------

Cash and cash equivalents reflected on the
    Statement of Cash Flows                                                $  19,431,997       $  26,718,725
                                                                           =============       =============

Supplemental Disclosures of Cash Flows Information:
    Cash paid during the period for:

    Interest                                                               $   3,932,594       $   4,210,016
                                                                           =============       =============

    Income taxes                                                           $      87,000       $      50,000
                                                                           =============       =============

</TABLE>

The accompanying notes to the consolidated financial statements are an integral
part of these statements.

                                       7
<PAGE>
                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
             ------------------------------------------------------

Note 1 - Principles of Consolidation
         ---------------------------

          BCSB Bankcorp, Inc. (the "Company") owns 100% of BCSB Bankcorp Capital
          Trust I, BCSB Bankcorp  Capital Trust II and Baltimore  County Savings
          Bank, F.S.B. and subsidiaries (the "Bank") and also invests in federal
          funds sold,  interest-bearing  deposits in other banks and U.S. Agency
          bonds. The Bank owns 100% of Baltimore County Service  Corporation and
          Ebenezer Road, Inc. The accompanying consolidated financial statements
          include  the  accounts  and  transactions  of  these  companies  on  a
          consolidated  basis since the date of  acquisition.  All  intercompany
          transactions  have  been  eliminated  in  the  consolidated  financial
          statements.   Ebenezer  Road,  Inc.  sells  insurance  products.  It's
          operations are not material to the consolidated financial statements.

Note 2 - Basis for Financial Statement Presentation
         ------------------------------------------

          The accompanying  consolidated financial statements have been prepared
          in accordance with  accounting  principles  generally  accepted in the
          United  States  of  America  and  the   instructions   to  Form  10-Q.
          Accordingly,  they do not include all of the  disclosures  required by
          accounting  principles  generally  accepted  in the  United  States of
          America  for  complete  financial   statements.   In  the  opinion  of
          management,  all  adjustments  (none of which were  other than  normal
          recurring accruals) necessary for a fair presentation of the financial
          position and results of operations for the periods presented have been
          included.  The financial  statements of the Company are presented on a
          consolidated  basis with those of the Bank.  The results for the three
          months ended December 31, 2003 are not  necessarily  indicative of the
          results  of  operations  that  may be  expected  for the  year  ending
          September 30, 2004. The consolidated  financial  statements  should be
          read in conjunction  with the  consolidated  financial  statements and
          related  notes which are  incorporated  by reference in the  Company's
          Annual Report on Form 10-K for the year ended September 30, 2003.

Note 3 - Cash Flow Presentation
         ----------------------

          For  purposes  of  the  statements  of  cash  flows,   cash  and  cash
          equivalents include cash and amounts due from depository institutions,
          investments  in  federal  funds,  and  certificates  of  deposit  with
          original maturities of 90 days or less.


                                       8
<PAGE>
                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
             ------------------------------------------------------


Note 4 - Earnings Per Share
         ------------------

          Basic per share  amounts are based on the weighted  average  shares of
          common  stock  outstanding.  Diluted  earnings  per share  assume  the
          conversion,  exercise  or  issuance  of  all  potential  common  stock
          instruments such as options,  unless the effect is to reduce a loss or
          increase  earnings per share.  No adjustments  were made to net income
          (numerator) for all periods presented.  The basic and diluted weighted
          average  shares  outstanding  for the three months ended  December 31,
          2003 and 2002 is as follows:
<TABLE>
<CAPTION>

                                                                For the Three Months Ended December 31, 2003
                                                              -----------------------------------------------
                                                                Income             Shares        Per Share
         Basic EPS                                            (Numerator)       (Denominator)     Amount
         ---------                                            -----------       -------------    ---------
          <S>                                                     <C>               <C>            <C>
         Income available to common stockholders              $   225,909        5,778,442       $    0.04

         Effect of dilutive shares                                     --           54,059              --
                                                              -----------       ----------       ---------

         Diluted EPS
         -----------

         Income available to common stockholders
             plus assumed conversions                         $   225,909        5,832,501       $    0.04
                                                              ===========       ==========       =========
</TABLE>

<TABLE>
<CAPTION>

                                                               For the Three Months Ended December 31, 2002
                                                              ---------------------------------------------
                                                                Income             Shares        Per Share
         Basic EPS                                            (Numerator)       (Denominator)     Amount
         ---------                                            -----------       -------------    ---------
          <S>                                                     <C>               <C>            <C>
         Income available to common stockholders              $   452,509        5,718,212       $    0.08

         Effect of dilutive shares                                     --           33,792              --
                                                              -----------       ----------       ---------
         Diluted EPS
         -----------

         Income available to common stockholders
             plus assumed conversions                         $   452,509        5,752,004       $    0.08
                                                              ===========       ==========       =========
</TABLE>

                                       9
<PAGE>
                      BCSB BANKCORP, INC. AND SUBSIDIARIES
                      ------------------------------------
                               Baltimore, Maryland
                               -------------------

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
             ------------------------------------------------------

Note 5 - Regulatory Capital
         ------------------

     The following table sets forth the Bank's capital  position at December 31,
2003.
<TABLE>
<CAPTION>

                                                                                                To Be Well
                                                                                             Capitalized Under
                                                                        For Capital          Prompt Corrective
                                            Actual                   Adequacy Purposes         Action Provision
                                    ------------------------     -----------------------   ------------------------
                                    Actual           % of        Required        % of      Required          % of
                                    Amount           Assets       Amount        Assets      Amount           Assets
                                    ------           ------      --------       ------     --------          ------
<S>                                   <C>             <C>         <C>           <C>          <C>                <C>
                                                                     (unaudited)

Tangible (1)                     $ 52,625,111          8.10%   $ 9,746,463       1.50%        N/A             N/A
Tier 1 capital (2)                 52,625,111         15.45            N/A        N/A     20,431,373          6.00%
Core (1)                           52,625,111          8.10     25,990,567       4.00     32,488,208          5.00
Risk-weighted (2)                  54,709,591         16.07     27,241,830       8.00     34,052,288         10.00
</TABLE>

------------
(1) To adjusted total assets.
(2) To risk-weighted assets.

Note 6 - Stock Option Plan
         -----------------

          Stock-Based  Employee  Compensation- At December 31, 2003 and 2002 the
          company has four stock-based  employee  compensation  plans, which are
          described more fully in the 2003 Annual Report.  The company  accounts
          for those plans under the recognition  and  measurement  principles of
          APB Opinion No. 25,  Accounting  for Stock  Issued to  Employees,  and
          related  Interpretations.  No compensation cost is reflected in income
          for the granted  options as all granted  options had an exercise price
          equal to the market value of the  underlying  common stock on the date
          of grant. The following table illustrates the effect on net income and
          earnings  per  share  if  the  Company  had  applied  the  fair  value
          recognition  provisions  of FASB  Statement  No. 123,  Accounting  for
          Stock-Based Compensation, to stock-based employee compensation.

<TABLE>
<CAPTION>
                                                                     For the three months ended December 31,
                                                                               2003              2002
                                                                               ----              ----
                         <S>                                                    <C>                <C>
                  Net Income, as reported                                   $ 225,909         $ 452,509
                  Add: Stock-based Compensation
                       Included in the determination of
                       Net income as reported, net of tax                      62,023            53,670
                  Deduct: Total stock-based compensation
                             Expense determined under fair value
                              Method for all awards, net of tax               (75,221)          (58,642)
                                                                              -------           -------
                       Pro forma net income                                 $ 212,711         $ 447,537
                                                                              =======           =======
                       Earnings per share:

                       Basic-as reported                                        $ .04             $ .08
                                                                                  ===               ===
                       Basic-pro forma                                            .04               .08
                                                                                  ===               ===
                       Diluted-as reported                                        .04               .08
                                                                                  ===               ===
                       Diluted-proforma                                           .04               .08
                                                                                  ===               ===
</TABLE>

                                       10
<PAGE>

Note 7 - Recent Accounting Pronouncements
         --------------------------------

          In January  2003,  the  Financial  Accounting  Standards  Board (FASB)
          issued FASB Interpretation No 46,  "Consolidation of Variable Interest
          Entities,  an  Interpretation  of ARB No.  51." FIN 46 was  revised in
          December  2003.  This  interpretation  provides  new  guidance for the
          consolidation  of variable  interest  entities (VIE) and requires such
          entities to be  consolidated  by their  primary  beneficiaries  if the
          entities do not effectively  disperse risk among the parties involved.
          The  interpretation  also adds disclosure  requirements  for investors
          that  are  involved  with  unconsolidated  VIEs.  FIN 46 will  require
          deconsolidation of BCSB Capital Trust I and BCSB Capital Trust II. The
          deconsolidation  will  not have a  material  effect  on the  Company's
          financial  position,  results  of  operation.  or the  bank's  capital
          position.  FIN 46 will be effective,  for periods starting after March
          15, 2004.

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

GENERAL

     The  Company  was formed by the Bank to become the  holding  company of the
Bank following the Bank's  reorganization  to the mutual holding company form of
organization (the "Reorganization").  The Reorganization was consummated on July
8, 1998.

     The Company's net income is dependent primarily on its net interest income,
which is the difference  between interest income earned on its loan,  investment
securities  and  mortgage-backed  securities  portfolio  and  interest  paid  on
interest-bearing  liabilities.  Net  interest  income is  determined  by (i) the
difference  between yields earned on  interest-earning  assets and rates paid on
interest-bearing  liabilities  ("interest  rate  spread")  and (ii) the relative
amounts  of  interest-earning  assets  and  interest-bearing   liabilities.  The
Company's  interest  rate  spread  is  affected  by  regulatory,   economic  and
competitive  factors  that  influence  interest  rates,  loan demand and deposit
flows.  To a lesser  extent,  the  Company's  net income also is affected by the
level of other income,  which primarily consists of fees and charges, and levels
of non-interest expenses such as salaries and related expenses.

     The  operations  of the Company are  significantly  affected by  prevailing
economic  conditions,  competition  and  the  monetary,  fiscal  and  regulatory
policies of  governmental  agencies.  Lending  activities  are influenced by the
demand  for and  supply of  housing,  competition  among  lenders,  the level of
interest rates and the  availability of funds.  Deposit flows and costs of funds
are  influenced by prevailing  market rates of interest,  primarily on competing
investments, account maturities and the levels of personal income and savings in
the Company's market area.

CRITICAL ACCOUNTING POLICIES

     The Company's  significant  accounting  policies are set forth in Note 1 of
the consolidated  financial  statements as of September 30, 2003 which was filed
on Form 10-K. Of these significant  accounting  policies,  the Company considers
its policy  regarding  the  allowance  for loan  losses to be its most  critical
accounting policy,  because it requires management's most subjective and complex
judgments.  In addition,  changes in economic  conditions can have a significant
impact on the  allowance  for loan losses and  therefore  the provision for loan
losses and results of operations. The Company has developed appropriate policies
and  procedures  for  assessing  the adequacy of the  allowance for loan losses,
recognizing  that this process  requires a number of  assumptions  and estimates
with respect to its loan portfolio. The Company's assessments may be impacted in
future  periods by  changes in  economic  conditions,  the impact of  regulatory
examinations, and the discovery of information with respect to borrowers that is
not  known  to  management  at the  time  of the  issuance  of the  consolidated
financial statements.  The Company adopted the disclosure only provision of FASB
123 see note 6 to the consolidated  financial statements.  They do not expect to
expense the fair market  value of stock  options  until  required by  accounting
principles generally accepted in the United States of America.

FORWARD-LOOKING STATEMENTS

     When used in this Form 10-Q,  the words or phrases  "will  likely  result,"
"are expected to," "will continue," "is anticipated,"  "estimate,"  "project" or
similar expressions are intended to identify "forward-looking statements" within
the  meaning of the  Private  Securities  Litigation  Reform  Act of 1995.  Such
statements are subject to certain risks and  uncertainties  including changes in
economic  conditions  in the  Company's  market  area,  changes in  policies  by
regulatory  agencies,  fluctuations in interest  rates,  demand for loans in the
Company's market area, and competition that could cause actual results to differ
materially  from  historical   earnings  and  those  presently   anticipated  or
projected.  The Company wishes to caution readers not to place undue reliance on
any such forward-looking  statements,  which speak only as of the

                                       11
<PAGE>

date made.  The Company  wishes to advise  readers that the factors listed above
could affect the Company's  financial  performance and could cause the Company's
actual  results for future  periods to differ  materially  from any  opinions or
statements expressed with respect to future periods in any current statements.

     The Company does not undertake,  and specifically disclaims any obligation,
to  publicly  release  the  result  of any  revisions  which  may be made to any
forward-looking  statements to reflect events or circumstances after the date of
such  statements or to reflect the occurrence of  anticipated  or  unanticipated
events.

COMPARISON OF FINANCIAL CONDITION AT DECEMBER 31, 2003 AND SEPTEMBER 30, 2003

     During the three months  ended  December 31,  2003,  the  Company's  assets
decreased by $7.9 million,  or 1.2% from $668.2 million at September 30, 2003 to
$660.3  million at December 31, 2003.  Loans  receivable,  net decreased by $5.7
million, or 1.6%, from $365.0 million at September 30, 2003 to $359.3 million at
December 31, 2003. The Company's  mortgage-backed  securities available for sale
decreased by $2.6 million, or 2.2%, from $116.2 million at September 30, 2003 to
$113.6  million at December 31, 2003. The Company's  mortgage-backed  securities
held to maturity  decreased by $700,000 or 3.8% from $18.4  million at September
30,  2003 to $17.7  million at  December  31,  2003.  The  Company's  investment
portfolio available for sale decreased $6.9 million or 5.7%, from $121.3 million
at September  30, 2003 to $114.4  million at December 31,  2003.  The  Company's
investment  portfolio held to maturity  increased by $500,000 or 20.0% from $2.5
million at September  30, 2003 to $3.0 million at December 31, 2003.  During the
three months ended December 31, 2003 the Company purchased $11.5 million of bank
owned life  insurance.  The  preceding was  accomplished  in an effort to reduce
interest  rate risk in the balance  sheet.  The bank was  reluctant to make long
term low rate loans in the low interest rate  environment  that prevailed during
the three month  period ended  December  31,  2003.  Emphasis has been placed on
short term loans such as  automobile  loans,  home  equity  loans and short term
mortgages. The Company's deposits increased by $3.8 million, or .7%, from $551.9
million at  September  30, 2003 to $555.7  million at  December  31,  2003.  The
increase in deposits was achieved through normal marketing efforts.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2003 AND
2002

     Net Income.  Net income decreased by $227,000,  or 50.1%, from $452,000 for
the three months ended  December 31, 2002 to $226,000 for the three months ended
December 31,  2003.  The decrease in net income was  primarily  attributable  to
decreased  net  interest  income of  $347,000.  This was  partially  offset by a
decrease in the  provision  for loan losses and income  taxes and an increase in
other income due to the Bank Owned Life Insurance.

     Net Interest  Income.  Net  interest  income was $3.9 million for the three
months ended  December  31, 2003,  compared to $4.5 million for the three months
ended  December 31, 2002,  representing  a decrease of $629,000,  or 14.0%.  The
decrease  was  primarily  due to the  decrease in the  average  rate on interest
earning-assets.  The average  rate on  interest-earning  assets  decreased by 88
basis points from,  6.15% for the three months ended  December 31, 2002 to 5.27%
for the three months ended  December 31, 2003.  Due to declining  interest rates
and loans re-pricing  faster than deposits the interest rate spread decreased 37
basis points from,  3.07% for the three months ended  December 31, 2003 to 2.70%
for the three months ended December 31, 2003.

     Interest Income.  Interest income decreased by $872,000, or 10.0% from $8.7
million for the three  months  ended  December  31, 2002 to $7.8 million for the
three months ended  December 31, 2003.  Interest and fees on loans  decreased by
$1.4 million,  or 19.3%,  from $7.0 million for the three months ended  December
31, 2002 to $5.6 million for the three months ended December 31, 2003.  This was
primarily  due to a decrease  in the average  yield on loans of 90 basis  points
from 7.15% for the three months  ended  December 31, 2002 to 6.25% for the three
months  ended  December 31, 2003,  and a $30.2  million  decrease in the average
balance of loans  receivable  from $391.8 million at December 31, 2002 to $361.6
million at December 31, 2003.  The decrease in the average  balance of loans was
primarily  attributable  to increased  competition  in the  refinancing  market,
current economic  conditions and the  management's  reluctance to make long term
low rate loans in the low interest rate  environment  that prevailed  during the
period.  The  decrease in the average  yield was  attributed  to the  prevailing
market rates in the economy. Interest on mortgage-backed securities increased by
$144,000 or 13.7% from $1.1 million for the three months ended December 31, 2002
to $1.2 million for the three months ended December 31, 2003.  This increase was
primarily  due to  the  increase  in  the  average  balance  of  mortgage-backed
securities from $92.8 million at December 31, 2002 to $108.1 million at December
31, 2003. Interest and dividends on investment  securities increased by $416,000
or 78.9% from $527,000  million for the three months ended  December 31, 2002 to
$943,000  million  for the  three  months  ended  December  31,  2003.  This was
primarily  due to an  increase in the average  balance of  investments  of $63.5
million from,  $56.0 million at December 31, 2002 to $119.6  million at December
31, 2003. The increase in the average  balance more than offset a decrease of 61
basis  points in the average

                                       12
<PAGE>

yield on investments  from,  3.76 % for the three months ended December 31, 2002
to 3.15% for the three months ended December 31, 2003.

     Interest Expense. Interest expense, which consists of interest on deposits,
interest  on  borrowed  money and other  interest  expense  decreased  from $4.1
million for the three  months  ended  December  31, 2002 to $3.9 million for the
three months ended  December 31, 2003 a change of $243,000 or 5.8%.  Interest on
deposits  decreased  $305,000 due to a decrease in the average yield on deposits
of 49 basis  points  from 2.92% at December  31,  2002 to 2.43% at December  31,
2003. This was partially offset by an increase in the average volume of deposits
of $50.9 million from $504.2  million at December 31, 2002 to $555.2  million at
December 31, 2003. The Company was able to increase its deposits  through normal
marketing efforts.  Interest on short-term  borrowings  decreased by $13,000 for
the three months ended December 31, 2003,  and interest on long-term  borrowings
decreased by $14,000 for the three months ended December 31, 2003. This decrease
was primarily due to a decrease of 161 basis points in the average yield paid on
advances  from the  Federal  Home Loan Bank of Atlanta  during the three  months
ended December 31, 2003. Also  contributing to interest  expense was interest on
the Trust  Preferred  Securities  which was  $268,000 for the three month period
ending December 31,2003,  compared to $179,000 for the three month period ending
December 31, 2002.

     Average Balance Sheet.  The following table sets forth certain  information
relating to the Company's  average  balance sheet and reflects the average yield
on assets and cost of  liabilities  for the  periods  indicated  and the average
yields  earned and rates  paid.  Such  yields and costs are  derived by dividing
income or  expense  by the  average  daily  balance  of  assets or  liabilities,
respectively,  for the three month  periods  ended  December  31, 2003 and 2002.
Total average assets are computed using month-end balances.

     The table also presents  information for the periods indicated with respect
to the differences between the average yield earned on  interest-earning  assets
and  average  rate  paid on  interest-bearing  liabilities,  or  "interest  rate
spread," which banks have  traditionally  used as an indicator of profitability.
Another  indicator of net interest income is "net interest margin," which is its
net interest income divided by the average balance of interest-earning assets.
<TABLE>
<CAPTION>

                                                                    Three Months Ended December 31
                                               ---------------------------------------------------------------------------
                                                             2003                                    2002
                                               -----------------------------------    -------------------------------------
                                               Average                   Average       Average                     Average
                                               Balance      Interest      Rate         Balance       Interest       Rate
                                               -------      --------     -------       -------       --------      --------
<S>                                             <C>           <C>         <C>           <C>            <C>            <C>
                                                                           (Dollars in thousands)
Interest-earning assets:
   Loans....................................   $ 361,599    $   5,653        6.25%       $391,822    $  7,008         7.15%
   Mortgage-backed securities...............     108,150        1,200        4.44          92,795       1,056         4.55
   Dividends and investment securities......     119,575          943        3.15          56,096         527         3.76
   Other Investments........................       3,800           14        1.47          24,336          91         1.50
                                               ---------    ---------                  ----------    --------
       Total interest-earning assets........     593,124        7,810        5.27         565,049       8,682         6.15
Noninterest-earning assets..................      68,784                                   30,496
                                               ---------                               ----------
       Total assets.........................   $ 661,908                               $  595,545
                                               =========                               ==========

Interest-bearing liabilities:
   Deposits.................................   $ 555,192        3,371        2.43         504,238       3,676         2.92
   FHLB Advances............................      34,258          304        3.55          25,760         332         5.16
   Trust Preferred Securities...............      22,500          268        4.76          12,500         178         5.70
   Other liabilities........................       1,094            1        0.37           1,435           1         0.28
                                               ---------    ---------                  ----------    --------
Total interest-bearing liabilities..........     613,044        3,944        2.57         543,933       4,187         3.08
                                                            ---------    --------                    --------      -------
Noninterest-bearing liabilities.............       4,752                                    5,125
                                               ---------                               ----------
       Total liabilities....................     617,796                                  549,058
Stockholders' equity .......................      44,112                                   46,487
                                               ---------                               ----------
       Total liabilities and stockholders'
            equity..........................   $ 661,908                               $  595,545
                                               =========                               ==========

Net interest income.........................                $   3,866                                $  4,495
                                                            =========                                ========
Interest rate spread........................                                 2.70%                                    3.07%
                                                                          =======                                     ====
Net interest margin.........................                                 2.61%                                    3.18%
                                                                          =======                                     ====
Ratio average interest earning assets/
    interest bearing liabilities............                                96.75%                                  103.88%
                                                                            =====                                   ======
</TABLE>


                                       13
<PAGE>

     Rate/Volume  Analysis.  The table  below  sets  forth  certain  information
regarding  changes in interest  income and interest  expense of the Bank for the
periods   indicated.   For  each   category   of   interest-earning   asset  and
interest-bearing liability,  information is provided on changes attributable to:
(i) changes in volume (changes in volume  multiplied by old rate);  (ii) changes
in rates  (change  in rate  multiplied  by old  volume);  and (iii)  changes  in
rate/volume (changes in rate multiplied by the changes in volume).
<TABLE>
<CAPTION>

                                                          For Three Months Ended December 31,
                                                ---------------------------------------------------
                                                        2003             vs.            2002
                                                ---------------------------------------------------
                                                              Increase (Decrease)
                                                                      Due to
                                                ---------------------------------------------------
                                                                                Rate/
                                                Volume         Rate            Volume        Total
                                                ------         ----            ------        -----
 <S>                                             <C>            <C>             <C>           <C>
                                                                   (In thousands)
Interest income:
  Loans receivable..........................   $   (537)      $   (888)      $     70    $ (1,355)
  Mortgage-backed securities................        177            (28)            (5)        144
  Investment securities and
      FHLB Stock............................        593            (82)           (95)        416
  Other interest-earning assets.............        (77)             0              0         (77)
                                               ---------      --------       --------    ---------
    Total interest-earning assets...........        156           (998)           (30)       (872)

Interest expense:
  Deposits..................................        371           (614)           (62)       (305)
  FHLB advances.............................        109           (103)           (34)        (28)
  Trust Preferred Securities................        142            (29)           (23)         90
  Other liabilities.........................          0              0              0           0
                                               --------       --------       --------    --------
     Total interest-bearing
       liabilities..........................        622           (746)          (119)       (243)
                                               --------       ---------      ---------   ---------

Change in net interest income...............   $   (466)      $   (252)      $     89    $   (629)
                                               =========      =========      ========    =========
</TABLE>


     Provision for Loan Losses.  The Company charges  provisions for loan losses
to  earnings  to  maintain  the  total  allowance  for  loan  losses  at a level
management  considers  adequate to provide for probable  future loan losses.  In
determining  the  provision,  management  considers a number of factors  such as
existing loan levels, prior loss experience, current economic conditions and the
probability of these conditions  affecting future loan performance.  The Company
established  provisions  for losses on loans of  $182,000  for the three  months
ended  December  31,  2003,  as compared to $282,000  for the three months ended
December 31, 2002,  representing a decrease of $100,000. Loan chargeoffs for the
three months ended  December 31, 2003 were  $329,000 as compared to $243,000 for
the three months ended December 31, 2002 an increase of $86,000. Loan chargeoffs
increased due to adverse economic  conditions.  Loan recoveries were $26,000 for
the three  months  ended  December  31, 2003  compared to $195,000 for the three
months ended December 31, 2002.  Non performing  loans at December 31, 2003 were
$430,000 as compared to $759,000 at December 31, 2002.  The total loss allowance
allocated to domestic loans is $2.6 million.  In establishing  such  provisions,
management  considered an analysis of the risk  inherent in the loan  portfolio.
For additional information see Asset Quality.

     Other Income.  Other income  increased by $100,000,  or 23.5% from $426,000
for the three  months  ended  December 31, 2002 to $526,000 for the three months
ended December 31, 2003. The increase in other income for the three months ended
December 31 2003 was primarily attributable to an increase in the cash surrender
value of bank  owned life  insurance  of  $122,000  for the three  months  ended
December 31, 2003,  compared to $0 for the three months ended December 31, 2002.
There was also a gain on the sale of repossessed assets of $77,000 for the three
months  ended  December  31,  2003  compared to $0, for the three  months  ended
December 31, 2002.  Fees on  transaction  accounts also  increased  $82,000 from
$129,000 for the three months ended  December 31, 2002 to $211,000 for the three
months ended December 31, 2003.  Fees on transaction  accounts  increased due to
the increase in the volume of transaction  accounts.  These gains were partially
offset by a decrease in the gain on sale of loans of $43,000,  from  $67,000 for
the three months  ended  December 31, 2002 to $24,000 for the three months ended
December  31,  2003.  There  was  also a  decrease  in the  gain on the  sale of
investments of $38,000 for the three months ended December 31, 2003, from a gain
on investments of $25,000 for the three months ended December 31, 2002 to a loss
of $13,000 for the three  months ended  December  31, 2003.  Gain on the sale of
mortgage  backed  securities  also decreased  $62,000 for the three months ended
December 31,

                                       14
<PAGE>

2003 from $70,000 for the three months ended December 31, 2002 to $8,000 for the
three months ended December 31, 2003. These securities were sold in an effort to
mitigate interest rate risk.

     Non-interest  Expenses.  Total  non-interest  expenses remained  relatively
stable at $3.9 million for the three  months  ended  December 31, 2003 and 2002.
The Company  experienced  increases of $38,000 in salaries and related  expenses
for the three  months ended  December 31, 2003,  from $2.1 million for the three
months  ended  December  31,  2002 to $2.2  million for the three  months  ended
December 31, 2003.  Occupancy  expense also increased by $92,000,  from $395,000
for the three  months  ended  December 31, 2002 to $487,000 for the three months
ended December 31, 2003.  These increases were partially offset by a decrease in
data  processing  expense of $25,000,  from  $412,000 for the three months ended
December  31, 2002 to $386,000  for the three  months  ended  December 31, 2003.
Other expenses also decreased by $87,000 for the three months ended December 31,
2003,  from $163,000 for the three months ended December 31, 2002 to $76,000 for
the three months ended December 31, 2003.

     Income Taxes. The Company's income tax expense was $54,000 and $279,000 for
the three months ended December 31, 2003 and 2002,  respectively.  The Company's
effective tax rates were 19.2% and 38.2% for the three months ended December 31,
2003 and 2002, respectively.  The Company's effective tax rate decreased for the
three  months  ended  December  31, 2003 as compared to the same  quarter in the
prior  year as the  Company  earned  non-taxable  income  from bank  owned  life
insurance during the three months ended December 31, 2003.

COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET RISK

     The Company is a party to financial instruments with off-balance sheet risk
including  commitments  to extend  credit  under  existing  lines of credit  and
commitments  to sell  loans.  These  instruments  involve,  to varying  degrees,
elements of credit and interest rate risk in excess of the amount  recognized in
the consolidated balance sheets.

     Off-balance  sheet financial  instruments  whose contract amounts represent
credit and interest rate risk are summarized as follows:
<TABLE>
<CAPTION>

                                                                        December 31, 2003     September 30, 2003
                                                                       ------------------     ------------------
                                                                                   (In thousands)
              <S>                                                          <C>                          <C>
         Commitments to originate new loans                           $      5,512               $    10,600
         Commitments to originate new loans held for sale                       --                        --
         Unfunded commitments to extend credit under existing
              equity line and commercial lines of credit                    23,991                    20,400
         Commercial letters of credit                                          419                       419
         Commitments to sell loans held for sale                                --                        --
</TABLE>

The Company does not have any unconsolidated special purpose entities or other
similar forms of off-balance sheet financing arrangements.

     Commitments  to originate new loans or to extend  credit are  agreements to
lend to a customer as long as there is no violation of any condition established
in the contract.  Loan  commitments  generally expire within 30 to 45 days. Most
equity line  commitments for the unfunded portion of equity lines are for a term
of 20 years, and commercial lines of credit are generally renewable on an annual
basis.  Commitments  generally have fixed expiration dates or other  termination
clauses  and may require  payment of a fee.  Since many of the  commitments  are
expected to expire without being drawn upon, the total commitment amounts do not
necessarily  represent  future cash  requirements.  The Company  evaluates  each
customer's  creditworthiness  on a case-by-case basis. The amounts of collateral
obtained,  if deemed necessary by the Company upon extension of credit, is based
on management's credit evaluation of the borrower.

     Commitments  to sell loans held for sale are  agreements to sell loans to a
third party at an agreed upon price.


                                       15
<PAGE>
CONTRACTUAL OBLIGATIONS

As of December 31, 2003
<TABLE>
<CAPTION>

                                                                       Payments due by period
                                                                       ----------------------
                                                                       (Dollars in thousands)
                                          Less than
                                           1 year              1-3 years         4-5 years        Over 5 years          Total
                                     -----------------         ---------         ---------        ------------          -----
<S>                                        <C>                     <C>             <C>                   <C>              <C>
Time Deposits                        $       192,909             99,986            80,924               --             373,819
Long-term borrowings                          12,250              1,000             9,000            9,000              31,250
Trust Preferred Securities                        --                 --                --           22,500              22,500
Lease obligations                                907              2,847             1,347            5,422              10,523
                                     ---------------             ------            ------           ------             -------
Total contractual cash
    obligations                      $       206,066            103,833            91,271           36,922             438,092
                                     ===============            =======            ======           ======             =======
</TABLE>

ASSET QUALITY

     At  December  31,  2003,   the  Company  had   approximately   $561,000  in
non-performing assets (nonaccrual loans,  repossessed assets and foreclosed real
estate) or .08% of total assets.  At September 30, 2003,  non-performing  assets
were $593 000 or .04% of total assets.  The Bank's net charge-offs for the three
months ended  December 31, 2003 were  $303,000.  The Bank's  allowance  for loan
losses was $2.6 million at December  31, 2003 and $2.7 million at September  30,
2003.

     The following  table  presents an analysis of the Company's  non-performing
assets:
<TABLE>
<CAPTION>

                                                           At                      At
                                                      December 31,            September 30,
                                                          2003                    2003
                                                    ------------------      ------------------
<S>                                                       <C>                    <C>
Nonperforming loans:
Nonaccrual loans                                       $   430                    $  300
Loans 90 days past due and accruing                         --                        --
Restructured loans                                          --                        --
                                                       -------                    ------
Total nonperforming loans                                  430                       300
Other non-performing assets                                131                       283
                                                       -------                    ------
Total nonperforming assets                             $   561                    $  593
                                                       =======                    ======

Nonperforming loans to loans receivable, net               .12%                      .08%
Nonperforming assets as a percentage
 of loans and other real estate owned                      .16%                      .08%
Nonperforming assets to total assets                       .08%                      .04%

</TABLE>

                                       16
<PAGE>

The  following  table sets forth an  analysis of the Bank's  allowance  for loan
losses for the periods indicated.
<TABLE>
<CAPTION>

                                                              For the Three Months Ended
                                                                     December 31,
                                                                 2003            2002
                                                                 ----            ----
<S>                                                              <C>              <C>

Balance at beginning of period...................          $      2,698     $     2,199
                                                           ------------     -----------

Loans charged-off:
  Real estate mortgage:
    Single-family residential....................                    --              --
    Multi-family residential.....................                    --              --
  Commercial.....................................                    --              --
  Construction...................................                    --              --
  Commercial loans...............................                    --              --
  Consumer.......................................                   329             243
                                                           ------------     -----------
Total charge-offs................................                   329             243

Recoveries:
  Real estate mortgage:
    Single-family residential....................                    --              --
Multi-family residential.........................                    --              --
    Commercial...................................                    --              --
    Construction.................................                    --              --
Commercial loans secured.........................                    --              --
  Consumer.......................................                    26             103
                                                           ------------    ------------
Total recoveries.................................                    26             103
Net loans charged off............................                  (303)           (140)
Provision for loan  losses.......................                   182             282
                                                           ------------    ------------
Balance at end of period.........................          $      2,577    $      2,342
                                                           ============    ============

Ratio of net charge-offs to average
  loans outstanding during the period............                   .08%            .04%
                                                           ============    ============
</TABLE>

     Regulations  require  that the  Company  classify  its  assets on a regular
basis. There are three classifications for problem assets: substandard, doubtful
and loss.  The Company  regularly  reviews its assets to  determine  whether any
assets require  classification or  re-classification.  At December 31, 2003, the
Company had $561,000 in classified assets, consisting of $430,000 in substandard
and loss loans, $0 in foreclosed real estate and $ 131,000 in other  repossessed
assets.  At September 30, 2003, the Company had $583,000 in substandard  assets,
consisting of $300,000 in loans,  $0 in  foreclosed  real estate and $283,000 in
other repossessed assets.

     In addition to regulatory  classifications,  the Company also classifies as
"special mention" assets that are currently  performing in accordance with their
contractual  terms but may become  classified  or  non-performing  assets in the
future.  At December 31, 2003,  the Company has  identified  approximately  $2.8
million in assets classified as special mention.

LIQUIDITY AND CAPITAL RESOURCES

     At December 31, 2003,  the Bank  exceeded all  regulatory  minimum  capital
requirements. For information comparing the Bank's tangible, core and risk-based
capital  levels  to  the  regulatory  requirements,  see  Note  5  of  Notes  to
Consolidated Financial Statements.

     The  Company's  primary  sources of funds are deposits  and  proceeds  from
maturing investment securities and mortgage-backed  securities and principal and
interest  payments on loans.  While  maturities  and scheduled  amortization  of
mortgage-backed  securities and loans are a predictable source of funds, deposit
flows and mortgage prepayments are greatly influenced by general interest rates,
economic conditions, competition and other factors.

     The primary  investing  activities  of the Company are the  origination  of
loans and the purchase of investment securities and mortgage-backed  securities.
During the three months ended  December 31, 2003 and 2002, the Company had $15.4
million and $16.5 million, respectively, of loan originations.  During the three
months  ended  December  31,  2003 and 2002,  the Company  purchased  investment
securities in the amounts of $5.0 million and $24.1 million,

                                       17
<PAGE>

respectively,  and mortgage-backed securities in the amounts of $6.1 million and
$16.3 million,  respectively.  The primary financing  activity of the Company is
the attraction of savings deposits.

     The Company has other  sources of  liquidity  if there is a need for funds.
The Bank has the  ability  to  obtain  advances  from  the FHLB of  Atlanta.  In
addition, the Company maintains a portion of its investments in interest-bearing
deposits at other financial institutions that will be available, if needed.

     The Bank is required to maintain minimum levels of liquid assets as defined
by OTS regulations.  This requirement,  which may be changed at the direction of
the OTS depending upon economic  conditions  and deposit flows,  is based upon a
percentage  of deposits and  short-term  borrowings.  The Bank's  average  daily
liquidity  ratio  for the  month of  December  was  approximately  44.9%,  which
exceeded the  required  level for such  period.  Management  seeks to maintain a
relatively  high level of liquidity in order to retain  flexibility  in terms of
investment  opportunities  and deposit pricing.  Because liquid assets generally
provide for lower rates of return, the Bank's relatively high liquidity will, to
a certain extent, result in lower rates of return on assets.

     The  Company's  most liquid assets are cash,  interest-bearing  deposits in
other  banks and  federal  funds  sold,  which  are  short-term,  highly  liquid
investments with original  maturities of less than three months that are readily
convertible  to known amounts of cash.  The levels of these assets are dependent
on the Company's operating,  financing and investing activities during any given
period. At December 31, 2003, cash, interest-bearing deposits in other banks and
federal  funds  sold  were  $12.4  million,   $5.8.million   and  $1.3  million,
respectively.

     The Company  anticipates  that it will have  sufficient  funds available to
meet its current  commitments.  Certificates  of deposit  which are scheduled to
mature in less than one year at December 31, 2003 totaled $193.0 million.  Based
on past  experience,  management  believes  that a  significant  portion of such
deposits will remain with the Bank. The Bank is a party to financial instruments
with  off-balance-sheet  risk made in the normal  course of business to meet the
financing  needs of its  customers.  These  financial  instruments  are  standby
letters of credit,  lines of credit and  commitments  to fund mortgage loans and
involve  to  varying  degrees  elements  of credit  risk in excess of the amount
recognized in the statement of financial position. The contract amounts of those
instruments  express the extent of involvement  the Company has in this class of
financial  instruments and represents the Company's exposure to credit loss from
nonperformance by the other party.

     The Company  generally  requires  collateral  or other  security to support
financial instruments with off-balance-sheet  credit risk. At December 31, 2003,
the Company had commitments  under standby letters of credit and lines of credit
and commitments to originate mortgage loans of $419,000,  $23.9 million and $5.5
million respectively.

PART II.  OTHER INFORMATION

     ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

         (a)      List of Exhibits
                  ----------------

         The following exhibit is filed herewith:

         Exhibit
         Number       Title
         ------       -----

          31.1        Rule 13a-14(a) Certification of Chief Executive Officer

          31.2        Rule 13a-14(a) Certification of Chief Financial Officer

          32          Section 1350 Certification


                                       18
<PAGE>



     The  following  current  reports on Form 8K were filed  during the  quarter
ended December 31, 2003:

         (b)      Form 8-K
                  --------

     On  December  19,  2003 the  Company  filed a  Current  Report  on Form 8-K
reporting under Item 7 and Item 12.

     On October 3, 2003 the Company filed a Current Report on Form 8-K reporting
under Item 5.

                                       19
<PAGE>

                                   SIGNATURES

     Pursuant to the  requirements  of the  Securities and Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                    BCSB BANKCORP, INC.


Date:  May 12, 2004                 /s/ Gary C. Loraditch
                                    -------------------------------------------
                                    Gary C. Loraditch
                                    President
                                    (Principal Executive Officer)



Date:  May  12, 2004                /s/ Bonnie M. Klein
                                    --------------------------------------------
                                    Bonnie M. Klein
                                    Vice President and Treasurer
                                    (Principal Financial and Accounting Officer)